Hedge Funds Pile Into Stock Shorts Near Five-Year High, Goldman Warns of Squeeze Risk

Hedge funds added to short bets on stocks, pushing bearish positioning near a five-year high, Bloomberg reported October 22. Goldman Sachs puts short leverage in its prime brokerage book at the 99th percentile of its five-year history and warns a rebound could trigger a sharp squeeze as short sellers buy back shares. This is a risk flag, not a forecast.